It may be time to back the Footsie

The index of Britains biggest firms could be about to rally as blue chips catch up with their smaller rivals, says Alicia Wyllie

ADVENTUROUS investors who are prepared to take a short-term bet on the stock market should increase their exposure to the FTSE 100 index.

The blue-chip companies in the Footsie led the market rally, but were swiftly overtaken by medium-sized and smaller firms. Since the low on March 12 the Mid 250 index has leapt 48.5% while the Footsie has jumped 32.8%. The mid-cap index has done even better since April, with a return of 42.3% — more than double the 17.5% rise in the Footsie.